Over the past month, the S&P 500, which tracks the performance of the largest five-hundred companies in the United States - dropped nearly six percent.

 

In the same time, the FTSE 250 (which consists of the two-hundred and fifty largest companies listed on the London Stock Exchange) dropped over eight percent.

 

It’s not just the stock market that has suffered a decline; the most popular cryptocurrencies, those that may revolutionise the future of finance within the coming years, also took a heavy hit. Bitcoin (BTC) has fallen over sixteen percent in value and Ethereum (ETH) over twenty-six percent during the past month.

 

Most notably, however, has been the stark diminishing of ‘Stay at Home’ stocks, or stocks that have skyrocketed as a result of the coronavirus pandemic.

 

Peloton (PTON) stock is down more than eighty-five percent from its high.

 

Zoom Video (0A1O) is down more than eighty percent.

 

And Netflix (NFLX) is down almost fifty percent.

 

But what is the cause behind these crashes?

 

Well, many countries across the globe are lifting Covid restrictions, as the effects of the pandemic continue to shrink. Denmark, for example, has become the latest European country to lift almost all Covid curbs, as reported by the Financial Times.

 

Consequently, ‘Stay at Home’ stocks are likely to see lower growth, regardless of the vast utility and entertainment they have brought us during lockdown.

 

Despite this, it’s important to consider that the outbreak of pandemics is likely to occur more frequently.

 

According to the BBC, ‘We have created "a perfect storm" for diseases from wildlife to spill over into humans and spread quickly around the world, scientists warn.’

 

And if they do, Stay at Home stocks will rise again.